Cancellation
Definition of "Cancellation"
Same as term Cancellation Provision Clause: provision permitting an insured or an insurance company to cancel a property and casualty or a health insurance policy (circumstances vary; see also COMMERCIAL HEALTH INSURANCE) at any time before its expiration date. The insured must send written notice to the insurance company, which then refunds the excess of the premium paid above the customary short rates for the expired term. If the insurance company cancels, it sends written notice to the insured of cancellation and refunds the unearned portion of the premium.
Popular Insurance Terms
Standards set by the various state regulatory authorities that determine how financial statements must be prepared for regulators. The states are responsible for making certain that ...
Effort of a poor risk to seek insurance coverage. The onset of a health problem such as heart disease, for example, may prompt a person to apply for life insurance before seeking medical ...
Payments in a defined benefit plan. Benefits are allocated to the pension plan participants as premiums are received by the insurance company. Since the benefits purchased are paid up, the ...
Disability in which a wage earner is forever prevented from working because of injury or illness suffered. ...
Court that presides over estate distribution settlements, documentation of wills, and the appointment of legal guardians. ...
Special policy blank issued by an insured for individual shipments or other purposes under an open policy. The open policy allows an insured to buy protection for all marine business for an ...
Calculation of insurance premiums based on an age less than the current age of the insured. ...
Ratio of authorized control level risk-based capital of an insurance company to its total adjusted capital. This statistic determines regulatory action taken by the state's insurance ...
Membership organization of individuals especially trained in the application of property and casualty insurance to personal and business situations. Membership is achieved by passing a ...
Have a question or comment?
We're here to help.